Alliance & Leicester launch 6 year Growth & Income account

Alliance & Leicester has launched a new tranche of its 6 year Growth & Income account paying 8.00% gross/AER on half of the money invested, whilst the other half receives 50.00% of any growth in the FTSE 100 index. The new product will be open for investment for ten weeks from Friday 14 September 2007 to Friday 22 November 2007.

The new Growth & Income account is a fixed six year term deposit account that has two distinct features offering a fixed annual income and growth potential with a link to the FTSE 100 Index at the end of the period. As it is a deposit based account, it has a money back guarantee that promises to pay back the original money invested if it is held for the full six years. Up to £3,000 a year can be placed in a mini cash ISA.

Rachel Curtis, Senior Manager for Investments at Alliance & Leicester commented: “Given the recent stock market volatility we have seen, this product is ideal for customers who are keen to invest, but want to know their money is safe. The 6 Year Growth & Income account offers customers the chance to take the first step from saving into investments and dip their toes in the stock market, without risking their capital.”

The funds invested are placed with the deposit taker Credit Suisse at the start of the investment. The return is calculated in two ways – a regular income is paid at a rate of 8.00% annually on half of the original capital amount. The other half provides 50.00% of any capital growth in the FTSE 100 Index at the end of the six year term. This investment does not take account of dividends that would be available through holding shares in the FTSE 100 Index directly.

Rachel Curtis continues: “The account is designed to achieve an inflation beating return for savers by combining the prospect of capital growth on half of the investment with a better rate of income than is likely to be available on standard deposit accounts on the other half.

“Anyone who is looking to invest with the safety net of a money back guarantee, wants a fantastic interest rate and the chance to benefit from stock market growth at the end of the six year term, should come and talk to us to find out more.”